US entrepreneur and retailer team up to launch an outlet marketplace
A global retailer, Simon and a company backed by a US entrepreneur Michael Rubin, Rue Gilt Groupe (RGG) have joined their efforts to launch an outlet marketplace aimed at delivering a new concept of “digital value shopping” for consumers.
The new venture is backed by five leadership powers to combine Simon’s in-store retail expertise with RGG’s ecommerce expertise and include RGG’s Rue La La and Gilt platforms as well as Shop Premium Outlets℠ (SPO), Simon’s new online outlet marketplace – to support the marketplace which is designed to promote high-end brands at outlet pricing – making it affordable for shoppers to purchase luxury brands.
SPO marketplace will serve as a helping hand in supporting brands’ three-pronged growth strategies. That is, acquiring new customers, driving sales and optimising inventory, allaying brands’ pain-points to bagging transactions. The marketplace currently encompasses more than 2,000 designers and 300,000 products with more merchants planning to join over time as new enhancements are introduced to the site.
Over the coming year, Simon will promote the new venture using a portion of their well over $100 million-plus annual marketing budget and access to two billion annual shopper visits. The partnership will also leverage the combined databases of Simon and RGG, reaching more than 35 million shoppers.
“Following our successful test of ShopPremiumOutlets.com with VIP shoppers, we’re excited to expand our omnichannel capabilities in collaboration with a leading digital entrepreneur and the RGG platform. Our strong capabilities in the physical outlet space, combined with RGG’s exceptional e-commerce success, will give shoppers enhanced access to the world’s best brands and the most compelling deals both online and in-store. We believe online value shopping presents a tremendous business opportunity for Simon, given our credibility, trust and relationships with brands, retailers and shoppers.”
– David Simon, chairman, chief executive officer, president, Simon.
“The online value shopping market is a massive opportunity ready for the next disruptor. Partnering with industry leader Simon allows us to capitalise on this significant opportunity and accelerate RGG’s growth to quickly surpass $1 billion in sales. This transaction brings together the leaders in online and physical commerce to deliver the excitement of outlet shopping online to consumers and innovative solutions to our brand partners.”
– Michael Rubin, chairman, RGG.
RGG’s two brands, Rue La La and Gilt, will complement SPO as part of a growing value shopping ecommerce portfolio. SPO’s team will transition to RGG, who will be responsible for the day-to-day operations of SPO. Each platform will maintain their unique identity and continue to serve distinct customer segments – providing the excitement, value and unparalleled service that customers demand.
“Rue Gilt Groupe has a track record of success in growing and operating profitable businesses, including the Gilt acquisition a year ago. We are excited to partner with Simon on this innovative e-commerce property. Our expertise in e-commerce, data-science, curation and customer experience was the foundation for this partnership. Together with Simon’s leadership, we are excited about the future opportunities ahead for this new, innovative retail platform.”
– Mark McWeeny, chief executive officer, RGG.